Hanoi promotes advantages of collective economic model

Monday, 2018-07-09 16:38:52
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The Van Duc agricultural collective in Hanoi
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NDO - The cooperative economy has thrived since the Cooperative Law took effect in 2012. Many cooperatives in Hanoi have promoted their internal resources, renewed their mode of operation, invested in joint ventures, and opened new production and business activities, thus forming a wide-spread emulation movement.

Improving the quality of agricultural cooperatives

Hanoi currently has nearly 2,000 cooperatives and people’s credit funds, as well as two cooperative unions including the Hanoi Cooperative Union of Agricultural and Safe Farm Products Consumption and the Hoa Phong - Song Hong Cooperative Union. Meanwhile, there are more than 200 cooperative groups operating effectively in accordance with Decree 151/2007/ND-CP issued by the Government on the organisation and operation of cooperative groups. In addition to contributing to creating jobs for thousands of local members, these cooperatives have also created diversified commodity products that have contributed to poverty reduction and socio-economic development in the city.

According to Le Van Thu, Chairman of the Hanoi Cooperative Alliance (HCA), cooperatives have witnessed strong development since the Cooperative Law took effect in 2012. The Standing Committee of the HCA has also developed a draft project on promoting and developing the collective economy up to 2020, with a focus on disseminating role-models in the emulation movement of cooperatives in the city.

By the end of 2017, the Hanoi municipal People’s Committee had allocated roughly VND130 billion for the Cooperative Development Fund. In addition, the municipal Department of Planning and Investment also coordinated with the HCA to set up regular working groups in districts and towns in order to grasp the situation and promptly remove any difficulties and obstacles from the grassroots level. Five typical cooperative models in association with the sustainable product value chain have been set up, aimed at creating a connection between its members and enterprises.

Specifically, the revenues of each agricultural cooperative is estimated at over VND990 million with nearly 70% of the cooperatives making a profit. Besides, many agricultural cooperatives have actively participated in building new-styled rural areas and production zone planning, while transferring technical advances and promoting mechanisation in production. Several cooperatives have cooperated with seed companies to supply new high quality varieties, contributing to the average production value of VND220 million per hectares a year.

Replication of typical models

In 2018, Hanoi has focused its resources on building and developing typical cooperatives. Cooperatives are seen as a central point in the city’s key agricultural programmes, such as food safety and hygiene cooperatives, the development of safe agricultural cooperative chains, and cooperatives on agricultural mechanisation, etc. This is regarded as the right track especially in the context of the country having thousands of weak agricultural cooperatives which have not been dissolved. Deputy Minister of Agriculture and Rural Development, Tran Thanh Nam, has requested that localities quickly review and evaluate the current state of debts, assets, and organisational structure in order to elaborate detailed plans on the dissolution of ineffective cooperatives.

The An My Agricultural Cooperative in My Duc district is considered as a typical cooperative in Hanoi. The capital of the cooperative increased from VND5.7 billion in 2015 to nearly 9 billion by the end of 2017. The 2,900 member Cooperative has actively applied science and technology into its production to earn a profit from rice of over VND200 million per hectare a year. Members of the cooperative are regularly sent to attend training courses to improve their knowledge and skills. Furthermore, the cooperative has coordinated with the Vietnam Joint Stock Company to develop a 5 hectare pig raising farm and a potato value chain for the production of snacks.

In order to promote the obtained results in the future, co-operatives should continue to remodel themselves, improve their management capacity and update their operations, thus turning the collective economy into an important economic sector. It is also important to raise awareness on the role of cooperatives and cooperative economics, especially in agriculture, which is closely linked to the restructuring of the agricultural sector, the construction of new rural areas and sustainable poverty reduction.